000			01225nam a22001817a 4500
008			190311b xxu||||| |||| 00| 0 eng d
022			_a0304-405X
245			_aThreat of entry and debt maturity: Evidence from airlines/ by Parise, Gianpaolo _cParise, Gianpaolo
260			_aAmsterdam _bElsevier _cFebruary 2018
300			_aPages 226-247
440			_aJournal of Financial Economics _v127 (2) _x0304-405X
500			_aAbstract I explore the effect of the threat posed by low-cost competitors on debt structure in the airline industry. I use the route network expansion of low-cost airlines to identify routes where the probability of future entry increases dramatically. I find that when a large portion of their market is threatened, incumbents significantly increase debt maturity before entry occurs. Overall, the main findings suggest that airlines respond to entry threats trading off the benefits of short-term financing for lower rollover risk. The results are consistent with models in which firms set their optimal debt structure in the presence of costly rollover failure.
690			_aCompetition
690			_aDebt maturity
690			_aRollover risk
690			_aThreat of entry
942			_2lcc _cSE
999			_c361332 _d361332